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Should you turn over your bonds to stock?

Updated: 8/20/2019
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10y ago

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The important difference for investors in regards to bonds and stocks is risk. Stocks are a more risky investment, and as a result they can lead to both bigger gains and bigger losses. On the other hand, bonds are stable investments which consistently pay out.

For an investor who might be younger or have greater disposable income or fewer liabilities, a greater percentage of stocks might be a better option. For someone seeking to retire soon, or who is less informed about the Stock Market and its risks, more bonds might a safer option.

In all cases, investments in stock should be made with due consideration and research. A balanced portfolio will include both bonds and stock, but risk is the ultimate deciding factor.

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